Rallye Ghost Meeting

All,

It was Rallye’s bondholder meeting this morning and to be honest, it feels rather quiet.

However, it is unlikely that the meeting enjoyed great participation. If it did not pass the quorum, Sauvegarde law requires a second meeting - scheduled for Jan 27th, but either way, the court won’t need bondholder consent to approve the plan, because in proposing the 10 year term-out, the plan does not infringe bondholder rights.

Given Ms Borbouloux and Mr. Abitbol are on board with the plan, as are the banks and the derivatives, the path is paved for the court to sanction the plan. Moreover, given the bonds have thus far failed to organise, there will likely not even be a significant party challenging it.

Thus if all goes to plan, Rallye may be one of the rare instances where a company exits Sauvegarde before it has exhausted all its extension possibilities. It may be all over by March.

Wolfgang